News Release

Released: April 27, 1998  Contact: Michael J. Watson  899-6500 or (BC only) 1-800-373-6393

VANCOUVER - The British Columbia Securities Commission today announced a settlement with Kerry Wayne Gibbons and Douglas Russell Stickley, Prince George mutual fund sales persons formerly employed by Vantage Securities.

Executive Director Michael J. Watson said an administrative enforcement action was taken against the two over provision of investment advice unsuitable for the clients involved.

Under the settlement, Gibbons has agreed not to sell securities for 15 years and will pay the Commission $10,000 should he apply for registration. Stickley has agreed not to sell mutual funds for four months, to complete the Canadian Securities Course and make a payment of $5,000 to the Commission.

Gibbons agreed that he acted contrary to the clients' best interests during the period between August 1991 and August 1995 while employed by Vantage Securities Limited and then as president of CIG Consumers Investment Ltd. During that time, approximately 112 of Gibbons' clients borrowed money to purchase money market mutual funds that, at the time, were providing a rate of return less than the borrowing costs incurred by each client.

During the same time frame, Stickley was employed by Vantage Securities and advised clients to borrow money to purchase money market mutual funds that at the time were providing a rate of return below the borrowing cost. Stickley told the Commission he sincerely believed in the validity of his investment program and was not motivated by any dishonest or deceptive intent.

Vantage Securities, a respondent in the action over alleged failure to supervise the activities of these sales persons, was placed in receivership on April 23, 1998. The hearing with respect to Vantage's failure to supervise has been adjourned.

The B.C. Securities Commission is an independent agency of the provincial government responsible for regulating trading in securities and exchange contracts.